Business 20 June 2026 Daily Monitor (Uganda)
Uganda's SGR Project Secures Landmark Shs2.6 Trillion Funding from Islamic Development Bank
The Islamic Development Bank (IsDB) has approved a historic EUR 650.75 million (approximately Shs2.6 trillion) financing package for Uganda's Standard Gauge Railway (SGR) project. This represents the largest single-project funding ever provided by the IsDB to Uganda, marking a significant step for the nation's infrastructure development. Source: https://www.monitor.co.ug/uganda/news/national/uganda-s-sgr-gets-green-light-with-largest-ever-shs2-6-trillion-islamic-development-bank-financing-package-5503366
Uganda’s ambitious Standard Gauge Railway (SGR) project has received a major boost with the Islamic Development Bank (IsDB) approving a substantial financing package. The Executive Board of the IsDB has greenlit EUR 650.75 million, equating to roughly Shs2.6 trillion, for the SGR initiative. This landmark sum is the largest single-project financing the bank has ever committed to Uganda.
The significant approval occurred during the 51st IsDB Group Board of Governors’ Annual Meetings in Baku, Azerbaijan. Dr. Ramathan Ggoobi, Uganda’s Permanent Secretary and Secretary to the Treasury, who also serves as the Temporary Governor for Uganda, expressed the government’s commitment to finalizing all financial aspects of the railway project by November 2026.
The SGR is envisioned as a cornerstone for modernizing Uganda’s transport network. Its strategic goals include reducing freight transportation costs and enhancing trade connections with neighboring East African nations. The approved IsDB funds are designated for critical components of the SGR network.
Specifically, the financing will support the construction of key infrastructural elements. These include the 553-meter Jinja Nile Bridge, a 2.12-kilometer tunnel in Mbuya, Kampala, and the development of six major railway stations located in Tororo, Iganga, Jinja, Lugazi, Kampala East, and Kampala City. Additionally, three mechanical workshops are planned for construction in Kampala East, Jinja, and Tororo to support the railway operations.
This substantial investment from the IsDB builds upon an existing portfolio of eight active public operations between Uganda and the bank, valued at USD 896.55 million as of May 2026. The funding underscores a deepening partnership aimed at advancing Uganda’s development agenda across various sectors, including transport, road infrastructure, irrigation, and vocational education.
Source: Daily Monitor (Uganda)